Economic Offence Wing arrests former MD of Religare Enterprises in Rs 757 cr fraud case

New Delhi [India], June 7 : Economic Offence Wing of Delhi Police on Tuesday arrested former Managing Director and Chief Executive Officer of Religare Enterprise Limited (REL) Sunil Godhwani for his alleged involvement in a forgery case amounting to Rs 757 crores.
A case was registered against Godhwani and others, where on the basis of a fake and forged Standby letter of Credit (SBCL), the accused Godhwani had assigned 12 loans to a company named SCCPL and caused a huge loss to the complainant company Religare Finvest (RFL).
According to the Delhi Police, Godhwani who was currently in judicial custody was produced on Tuesday on a production warrant and later arrested. A case was registered on the complaint filed by Manpreet Singh AVP-Legal, Religare Finvest Ltd against former Employees of REL/RFL, Mohnish Mukkar and others. He stated that his company RFL (Religare Finvest Limited) is a non-banking financial company registered with RBI.
In April-May 2015 alleged Mohnish Mukkar and Veena Singh director of PHFPL (Perpetual Capital and Servicing Ltd) approached the complainant company for a loan. On July 25, 2015, an assignment agreement was executed between the parties for the direct assignment of certain loans and receivables to the alleged persons/companies for a purchase consideration of Rs 530 crore. Later, it is found that allegedly misrepresented its creditworthiness to the complainant to take over the relevant loans/receivables to the complainant which was the basis on which the complainant was induced into executing the agreement.
The complainant alleged in his complaint that alleged persons/companies have made an unlawful gain and have caused an unlawful loss to the complainant and its stakeholders.
During the investigation, police found that in April-May 2015, alleged Sunil Godhwani, then CEO and MD of Religare Enterprises Limited had introduced Mohnish Mukkar to the other governing body members of the RFL and told them that their company was engaged in the business of debt restructuring.
In July 2015 assignment agreement was executed between RFL and SCCPL (Strategic Credit Capital Private Limited), run by Mohnish Mukkar for 12 loans against a share account for a purchase consideration of Rs 530 crore approximately as per the term and condition of the assignment agreement the consideration amount was payable by SCCPL to RFL in two tranches, Initial purchase consideration of Rs 10.00 crore and Balance purchase of Rs 520.00 crore.
Further, it is submitted that the initial purchase consideration was paid by SCCPL to RFL at the time of execution of the said agreement deed and the balance purchase consideration was payable to RFL within 90 days from the date of execution of the agreement deed. The balance purchase consideration was secured by a Stand By Letter of Credit (SBLC) dated June 22, 2015, amounting to Rs. 540 crore which was issued by Bank La Financiere (Europe), and sent through Finvesta, Lithuania.
The said SBLC was relayed through RBL Bank, Rajouri Garden Delhi and valid till December 22, 2015. RBL bank had already informed alleged Sunil Godhwani and other officers of the RFL that the said SBLC is not an authentic one. The said SBLC was found fake and forged. On March 1, 2017, the central bank of Lithuania had given its findings/report and informed RFL that there is no bank in the name of La Franciere.
Godhwani was the key decision-maker of the company and after investigation police found that he was the key conspirator to dupe his own company. According to police Godhwani has later given an additional loan of Rs 227 crore to another company.